1099R Gross Distribution

[Chief]

A man has a 1099R with box 1 Gross distribution 61,883,
2a taxable amount blank
2b Total Distribution checked
Box 5 employee contributions?designated Roth contributions or ins premiums has the
amount ofr 61,883
Bx 7 Distribution Code 1
Box 9B total employee contributions 67,000.

First, does this require Form 5329
Second, if this is a Roth then none of it is taxable income.

What do you think?

[ChEAr$]

First of all,

A man has a 1099R with box 1 Gross distribution 61,883,
2a taxable amount blank
2b Total Distribution checked
Box 5 employee contributions?designated Roth contributions or ins premiums has the
amount ofr 61,883
Bx 7 Distribution Code 1
Box 9B total employee contributions 67,000.

First, does this require Form 5329
Second, if this is a Roth then none of it is taxable income.

What do you think?

You do not know what kind of plan this wasj, since you're asking what "if " this is
a ROTH. It might be, or not. If it were a ROTH, there would be either codes
J, Q or T in box 7.

But if 1 and 5 match, that indicates nothing taxable anyway. And I would just
fly with that.

[Chief]

1099r

This is not a Roth. It is an annuity he purchased and then redeemed. nothing taxable. Is it reportable any place else beside the line on 1040 for pensions and annuities. on the a section but not reported on b. I just got off the phone and learned this.

[Gretel]

Your client might have a loss if contribution were more then the distribution.

[Chief]

1099r

Gabriele, it was an even swap. He got back what he paid for the annuity. It was a return I picked up, the person had no phone, and the whole thing was guess work until I talked with again. I dont like to do returns with the client sitting next to me. Too much chance of errors. When I do a return with a client, I tell them the return is subject to review usually the next day.

Live and learn. I keep on learning. For myself I did the most stupid thing in tax planning. I bought a used van for an adult daugher and used part of my of my 401K funds to pay for it. I should have showed a slight profit in my tax prep business for 2005. Instead it was a third year showing a loss. For 2006 I had to show a profit of $40. The end result I owed about $380 where I always get a refund of $1500. I just pay up. I dont want to go the amended route. I've learned a lesson here too always plan your tax strategy three years at a time.

[OldJack]

Why would you not consider that your 1099R client did not have a deductible loss? He invested $67,000 and got back $61,883.

[Chief]

1099r

Because he had already gotten back that money in another year.